Single Property Investments
The Single Property Investment Structure:
Each property is purchased with a single purpose entity. (i.e. REI Equity Partners I, LLC) This type of investment entity is referred to as “limited liability partnerships” for tax purposes, and interests will be offered exclusively through word of mouth. The property to be purchased is identified in advance. Properties will be purchased with modest leverage approx. 65% LTV, and all Net Operating Income, less prudent reserves, will be distributed to investors on a monthly basis.
Investors receive 100% of every dollar distributed until and unless the investors have achieved the promised average annual "Preferred Return". Currently 7%. Investors then receive 70% of every dollar distributed above the "Preferred Return".
The Sponsor Organization “REI Equity Management, LLC” a Delaware LLC, will be the managing partner in each of the limited liability partnerships to be formed. REI Equity Management, LLC. will receive 30% of every dollar distributed above the "Preferred Return".
Each partnership will do business primarily with REI Advisors Group affiliated entities, all at standard market rates and all fully disclosed. These will include, but will not be limited to, real estate brokerage, mortgage brokerage and property management. Initially, the primary benefit and compensation to the REI Organization will be realized through these affiliate entities performing services for the partnerships, so there will be no front-end load to the investors.
Equity interests in this and subsequent limited liability partnerships will be offered to “Non-accredited” and “accredited” investors, as such term is defined in Regulation D promulgated under the Securities Act of 1933.